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Tech Function

Disruptive digital technologies are, true to their name, massive drivers of change in business, but many organizations are not set up for digital success.

Despite ambitious digitization efforts, many leaders are disappointed to find that their IT function isn’t prepared to leverage the emerging technologies that drive digital disruption and economic change. As a result, their companies are struggling to reinvent products and services, meet changing customer demands, and keep pace with digital competitors.

IT functions must be transformed into world-class technology functions. To do this, digital must go beyond IT. Companies need to build up digital capabilities and increase efficiency and simplification, across the board. By embarking on this journey, leaders don’t just envision the company of the future—they create it. Crucially, the technology function is treated as a strategic partner and a digital business enabler, not a service provider.


How We Help Clients Design Their Tech Function

To establish a world-class tech function, business and technology must work together to define a joint vision of the six drivers of tech function excellence:

Our work with clients can be defined in three phases:

  1. Assess. We first assess the maturity of the tech function and interview key stakeholders about the tech function’s performance. On the basis of that analysis, we develop a heatmap to pinpoint strengths and weaknesses so that leaders can define their goals and target prime areas for optimization.
  2. Execute. Our tech function consultants work collaboratively with clients to build new digital capabilities while simplifying IT systems to drive cost savings. We focus on boosting resilience to a variety of adverse developments, such as economic downturns.
  3. Scale. Our approach rapidly scales up to a comprehensive digital transformation. All new initiatives and adjustments are embedded in a transformation roadmap for the tech function, and the company selects KPIs to track the progress of individual initiatives and the success of the transformation.

Our Client Work on World-Class Tech Functions

Working with BCG’s tech function consulting team, clients have achieved a rise in customer satisfaction and return on digital investment, delivery times (including faster time to market and shorter cycle time) that are two to four times faster than was previously possibly, a 15% to 25% reduction in software development costs, and a 15% to 20% shift from indirect technology activities (such as overhead) to direct technology activities that add immediate value.

Insights on the Tech Function

Postpandemic Outsourcing Trends for CEOs

Companies will develop critical digital capabilities in-house, but they will continue to depend heavily on IT service providers, according to a 2020 BCG survey.

Meet Our Tech Function Consultants

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Tech + Us: Monthly insights for harnessing the full potential of AI and tech.

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